China has imposed high tariffs on some dairy products from the European Union, with the highest rates applying to producers in Poland. The industry claims this is Beijing’s retaliation for imposing tariffs on electric cars, writes Do Rzeczy.

In early October 2024, EU member states decided not to block the Commission’s proposed tariffs on electric vehicles manufactured in China, and the regulation entered into force on Oct. 30.

Germany, Hungary, Malta, Slovenia, and Slovakia voted against the tariffs. Belgium, the Czech Republic, Greece, Spain, Croatia, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden, and Finland abstained. The remaining EU countries, including Poland, voted in favor.

According to media reports, China recently made the unexpected decision to temporarily raise tariffs on certain dairy products from the bloc from 21.9 percent to 42.7 percent. Polish producers will now have to pay the highest tax rate.

Beijing claims the tariff hike is the result of an anti-dumping investigation into EU agricultural subsidies that violate free trade rules. However, industry representatives say it is retaliation for Poland’s support for tariffs on Chinese-made electric cars.

“This poses very serious problems for our Polish exports. Although it should be emphasized that we have indeed observed a decline in their scale over the last two years. Nevertheless, these products are still relatively well-marketed in China. Today, hopes that we will be able to recapture the Chinese market have been dashed,” Agnieszka Maliszewska, head of the Polish Milk Chamber, told Interia.

In turn, Professor Dominik Mierzejewski, founder of the Center for Asian Affairs at the University of Lodz, believes that Beijing’s decision is a “tit for tat.”

“The Chinese economy is slowly trying to isolate itself from international markets, demonstrating its resilience to the shocks associated with additional restrictions. Although this is true in less important sectors,” the expert pointed out.